Bruce Kovner quotes

Bruce Kovner is a renowned American investor, hedge fund manager, and philanthropist. With a net worth of over $5 billion, he is best known for founding Caxton Associates, a successful hedge fund that managed billions of dollars in assets. Kovner is also a prominent philanthropist, supporting causes such as education and the arts. His investment strategies and market insights have earned him a reputation as one of the most successful traders in the world. Learn more about Bruce Kovner and his impressive career in finance and philanthropy.

Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I'm getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis... I never think about stop vulnerability, because the point about a technical barrier – and I've studied the technical aspects of the market for a long time – is that the market shouldn't go there if you are right.

- Bruce Kovner

The Heisenberg principle: If something is closely observed, the odds are it is going to be altered in the process. The more a price pattern is observed by speculators the more prone you have false signals; the more the market is a product of non-speculative activity, the greater the significance of technical breakout.

- Bruce Kovner

The first rule of trading – there are probably many first rules – is don't get caught in a situation in which you can lose a great deal of money for reasons you don't understand.

- Bruce Kovner

The emotional burden of trading is substantial; on any given day, I could lose millions of dollars.

- Bruce Kovner

Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.

- Bruce Kovner

Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose.

- Bruce Kovner